Weaving economic self-reliance with industry as the backbone

Indonesia is assembling the major pieces towards economic self-reliance. Like weaving cloth from the finest threads, this development direction is not merely about chasing a series of growth figures, but about delivering an economic pace that brings real and inclusive benefits.

The target of 8 percent economic growth by 2029 is not just a statistical ambition, but a stepping stone towards a prosperous society with industry as its main locomotive.

The Ministry of Industry has affirmed its commitment to accelerating industrialisation as the primary instrument for creating quality economic growth, strengthening national self-reliance, and improving people’s welfare.

This strategic step is in line with the direction of President Prabowo Subianto in the Annual Session of the People’s Consultative Assembly and the Joint Session of the House of Representatives and the Regional Representatives Council in 2026 in Jakarta, Friday (14/8).

The President stressed that economic growth and incoming investment must not stop at achieving figures, but must have a real impact on all levels of society.

Minister of Industry Agus Gumiwang Kartasasmita views this message as a catalyst strengthening the resolve to carry out more inclusive industrialisation and to provide the greatest possible added value in the country.

Amid global uncertainty, Indonesia must not be overly dependent on other countries in meeting national strategic needs. In other words, industrial strength must be built through an increasingly deep and integrated structure, from the upstream to the downstream sector.

Efforts to strengthen the industrial foundation have already shown results. Based on data from Statistics Indonesia, the non-oil and gas processing industry in the second quarter of 2026 grew by 5.32 percent year-on-year. This figure was above the national economic growth in the same period, which stood at 5.29 percent.

In addition to growing faster than the national economy, the processing industry remains the sector with the largest contribution to gross domestic product, at 18.50 percent, while also being the largest contributor to economic growth with a contribution reaching 0.90 percent.

Indonesia’s Manufacturing Value Added now also ranks 12th in the world as of July 2025, with a value reaching 275.61 billion US dollars, cementing its first position in Southeast Asia.